In the last ditch negotiations this weekend, the British bank has conceded it is prepared to pay a "large fine" to Benjamin Lawsky, the combative Superintendent of New York State Department of Financial Services (DFS) and other US authorities. But the bank has said it will not yield until the regulator has "toned down" the presentation of its charges.

Mr Lawsky has summoned Standard Chartered to a hearing on Wednesday to "demonstrate why [its] licence to operate in the state of New York should not be revoked".

He claimed "flagrantly deception actions" by the bank left the US "vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes".

A source close to the bank said: "Standard Chartered is resolved to the fact that it is facing a big fine. But the bank feels it cannot agree to the charges as presented by Mr Lawsky. Neither side wants this week's hearing to go ahead but at the moment they are a gulf apart on the charges."

Peter Sands, chief executive of Standard Chartered, is on stand-by to travel to New York to meet Mr Lawsky although the DFS has still not decided who to call to the hearing.